E-commerce is definitely a second growth curve for Walmart, because Walmart has a huge customer base, and e-commerce greatly facilitates customers' shopping convenience and meets their needs. This reminds me of Walmart's past strategic cooperation with JD.com. They must have learned a lot in logistics and warehousing management, because JD.com has always been an outstanding leader in logistics management in China. Its huge Chinese customer base and data analysis of consumer's purchasing behavior preferences are enough to help Walmart better understand the habits of American consumers.
Everything is prepared for this Shining Moment. Also, I think the lock-down during pandemic period could be a big big catalyst for those retailer to have better understanding of supply chain and deeper thought about customer's basic needs. It is not only about shopping habit, it is talking about business model or the moat of enterprise.
We predicted Walmart's returns would crush Amazon's 2 years ago. See here https://x.com/ThePartnersFund/status/1891846205933486282?s=20
1) Walmart already has the infrastructure (90% of America w/in 10 miles) whereas Amazon needs capex to build it out.
2) Walmart is/was going all-in on advertising which has higher margins which attract higher multiples
3) AWS premium has been priced into Amazon's stock for the last 10 years.
Good one, bravo! Kudos!
E-commerce is definitely a second growth curve for Walmart, because Walmart has a huge customer base, and e-commerce greatly facilitates customers' shopping convenience and meets their needs. This reminds me of Walmart's past strategic cooperation with JD.com. They must have learned a lot in logistics and warehousing management, because JD.com has always been an outstanding leader in logistics management in China. Its huge Chinese customer base and data analysis of consumer's purchasing behavior preferences are enough to help Walmart better understand the habits of American consumers.
Exactly. Same goes for their Jet acquisition.
Everyone was shocked they spent $2bn and immediately shut it down. But it was just e-comm / logistics / warehousing management.
Everything is prepared for this Shining Moment. Also, I think the lock-down during pandemic period could be a big big catalyst for those retailer to have better understanding of supply chain and deeper thought about customer's basic needs. It is not only about shopping habit, it is talking about business model or the moat of enterprise.